Central bank wants bigger fines on substandard reports
The Bangko Sentral ng Pilipinas (BSP) is eyeing stiffer monetary penalties against financial institutions that would submit regulatory reports that do not meet the regulator’s reporting standards.
The BSP is seeking stakeholders’ feedback on a draft circular that would amend the reporting governance framework set by the Manual of Regulations for Banks (MORB). The central bank will accept comments on the draft document until Aug. 23, 2024.
The framework sets out the policies, expectations, as well as systems and resources necessary to generate “complete, accurate, timely, and adaptable” reports submitted to the BSP.
On the part of financial institutions, the BSP said the framework will guide financial executives in defining strategies, managing risks, and making decisions.
To compel banks and other financial institutions to submit complete and accurate regulatory reports in a timely manner, the draft BSP circular proposed a daily penalty of P1,000 for non-compliant companies with an asset size of up to P1 billion.
A bigger P2,000 fine would be imposed for each calendar day of offense by financial institutions with an asset size of above P1 billion but not exceeding P10 billion.
For firms with assets worth more than P10 billion but not exceeding P50 billion, a P3,000 daily penalty would be imposed for reporting violations.
Meanwhile, financial companies whose assets are above P50 billion but not exceeding P400 billion would be liable to a daily fine of P4,000 for reporting offenses while firms with assets worth more than P400 billion will be fined P5,000 per day of non-compliance.
Under the present rules, penalties could go as high as P600 per calendar day of reporting violations, and as low as P150 daily depending on the type of bank.
”In addition to continuing monetary penalties that shall be imposed on the BSP-supervised financial institutions for reporting violations, non-monetary sanctions… as provided under existing laws and regulations may be imposed,” the draft circular read.
